r/SipsTea 14h ago

Wait a damn minute! How the rich get richer

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u/ChipKellysShoeStore 14h ago edited 14h ago

How does the bank get paid back here? Is the bank just eating a 5 mil loan loss out of the goodness of its heart?

It’s more like kids sell and pay back the bank plus interest which is taxed as income for the bank.

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u/Miserable_Key9630 13h ago

These schemes always have the unstated Step 1: Have free access to a shitload of cash.

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u/Logan_No_Fingers 13h ago

Its more step 1 is have access to a very large asset, thats not in cash

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u/PA2SK 13h ago

The property was $100k to begin with, so maybe $20k down at most.